HomeMy WebLinkAboutResolution 4806-08-2017 A Resolution
NO. 4806-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
CHURCHILL ROAD WATER AND SEWER IMPROVEMENTS PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the
design, planning, acquisition and construction for the Churchill Road Water and
Sewer Improvements Project (the "Project") prior to the issuance of obligations by
the City in connection with the financing of the Project from available funds; and
WHEREAS, the City finds, considers, and declares that the reimbursement of
the City for the payment of such expenditures will be appropriate and consistent
with the lawful objectives of the City and, as such, chooses to declare its intention,
in accordance with the provisions of Section 1.150-2 of the Treasury Regulations, to
reimburse itself for such payments at such time as it issues obligations to finance the
Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum principal
amount not to exceed $750,000.00 for the purpose of paying the aggregate costs of the
Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this Statement
after a date which is later than 18 months after the later of (1) the date the expenditures
are paid or (2) the date on which the property, with respect to which such expenditures
were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued pursuant
to this Statement more than three years after the date any expenditure which is to be
reimbursed is paid.
ORT WORT
Resolution 4806-08-2017
Adopted this Pt day of August, 2017.
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Ronald P. Gonzales, Assistant City Secretary
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FORT WOR
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/1/2017 Ordinance No. 22804-08-2017 & Resolution No.
4806'
DATE: Tuesday, August 1, 2017 REFERENCE NO.: **C-28302
LOG NAME: 60CHURCHILL- NEELS1
SUBJECT:
Authorize Execution of an Engineering Agreement with Neel-Schaffer, Inc., in the Amount of$458,204.00
for Churchill Road Water and Sanitary Sewer Improvements, Provide for Additional Project Costs, Adopt
Reimbursement Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future
Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for Churchill Road Water and Sanitary Sewer Improvements;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water/Sewer DPN Fund in the amount of$653,804.00; and
3. Authorize the execution of an engineering Agreement with Neel-Schaffer, Inc., in the amount of
$458,204.00 for Churchill Road Water and Sanitary Sewer Improvements (City Project No. 100888)
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize the preparation of plans and
specifications for Churchill Road Water and Sanitary Sewer Improvements from White Settlement Road to
River Oaks Boulevard.
Neel-Schaffer, Inc., proposes to perform the necessary design services for a lump sum fee of
$458,204.00. Staff considers this proposed fee to be fair and reasonable for the scope of services
proposed.
In addition to the contract amount, $195,600.00 (Water: $123,900.00; Sewer: $71,700.00) is required for
project management, real property acquisition, and material testing.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund.
Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation
authority authorized under the Direct Purchase Note program will be used to provide interim financing for
this project until debt is issued. To the extent resources other than the Water and Sewer portfolio are used
to provide interim financing, the Water and Sewer Fund will be charged interest that is equivalent to the
overall rate of return being earned by the City portfolio (currently approximately one-percent annually).
Should the City's portfolio not support the liquidity needed to provide an interim short-term financing
source, another funding source will be required, which could mean issuance of securities under the Direct
Logname: 60CHURCHILL -NEELSI Page I of 3
Purchase Note program or earlier issuance of Water and Sewer revenue bonds than is currently planned.
Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and
Sewer portfolio and the City's portfolio in accordance with the attached reimbursement resolution.
The City Council adopted the Water Department's Fiscal Year 2017-2021 Five-Year Capital Improvement
Plan on January 24, 2017 (M&C G-18927). This City Council adopted plan includes this specific project,
with funding identified through the DPN program to be reimbursed with future revenue bonds. In
accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. This debt must be issued within approximately three years to provide reimbursement for these
expenses. If that does not occur, the costs will no longer be reimbursable by issuing tax-exempt debt and
the funding source will have to be made whole through other budgetary methods. Adoption of this
resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-
exempt bond proceeds.
Engineering is one component of the overall project that includes project management, easement
acquisition, utility coordination, material testing, inspection, construction and contingencies. The overall
project budget is $6,230,739.00. Design is expected to start in August 2017 and be completed by August
2018. Construction is anticipated to commence in December 2018 and be completed by July 2020. The
sanitary sewer component of this project is part of the Water Department's Sanitary Sewer Overflow
Initiative Program.
This project will have no impact on the Water Department' s operating budget.
M\WBE OFFICE: Neel-Schaffer, Inc., is in compliance with City's BDE Ordinance by committing to 16
percent SBE participation. The City's SBE goal on this project is 16 percent.
The project is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the Water/Sewer DPN Fund for Churchill Road
Water and Sanitary Sewer Improvements Project.
Appropriations are as depicted in the table:
FUND Existing Additional Project
Appropriations Appropriations Total*
Water & Sewer $0.00 $653,804.00 $653,804.00
DPN Fund 56011 _
Project Total 1 $0.00 $653,804.00 1$653,804.00
*Number rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccountl Project lProgratctivityl Budget I Reference # moun
tl
Logname: 60CHURCHILL -NEELS I Page 2 of 3
I I ID ID Year (Chartfield 2)
FROM
Fund Department lAccoun Project Program ctivity Budget Reference # IAmoun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originatinq Department Head: Kara Shuror (8819)
Additional Information Contact: Lawrence Hamilton (2626)
Logname: 60CHURCHILL -NEELSI Page 3 of 3